investment focus of Siddhi Capital: 'GLP-1, their AI, offers significant potential'
In the dynamic world of foodtech, the landscape has undergone a significant transformation in 2025. Investors are now more cautious and selective, favouring startups that demonstrate proven unit economics, clear paths to profitability, and strong supply chains[1][5].
This new investing climate has resulted in a focus on later-stage investments in companies that demonstrate reliable business models and traction, rather than early seed rounds [1]. The emphasis is on sustainable and functional foods, with a preference for alternative proteins and products targeting gut health and health benefits such as muscle maintenance or weight management [1][2][4].
Products backed by clinical evidence and demonstrated velocity in retail are performing better in fundraising, reflecting investors’ increased demand for measurable proof rather than projections [1]. Successful fundraising now requires strategic investors who understand food industry specifics such as margins, co-packing, shelf life, and regulatory timelines [1].
Modern fundraising tools, such as trackable pitch decks, have become essential to stand out and engage foodtech investors effectively [1]. While activity has rebounded modestly with a small increase in deal value, investors remain "once-bitten, twice-shy," favouring companies with proven track records over 'grow-at-all-costs' models common before the pandemic [5].
For startups in foodtech, this means they must have clear evidence of market traction, sustainable and scalable operations, and validated health benefits to attract investment. R&D and innovation must be balanced with familiar and trusted ingredients/formulations, appealing to consumer demands for transparency and clean labels [2]. Strategic partnerships, including with co-packers and retail contacts, gain greater importance due to the complex nature of food production and distribution [1]. Fundraising campaigns should adopt digital, trackable engagement tools to improve communication and follow-up with investors [1].
Companies innovating in sustainable food systems, alternative proteins, and supply chain technologies — especially those leveraging emerging tech like blockchain for transparency — remain well-positioned for investment interest [1][3].
In this climate, GLP-1 remains a significant area of interest, with opportunities in meal plans, alternatives to drugs, and new startups. Siddhi Capital, for instance, is invested in high-protein cereal brand Magic Spoon, GLP-1 focused startups like Lembas and SuperGut, and meal planning company mealogic. ProFuse Technology, a portfolio company of Siddhi Capital, has expanded its remit to tap into interest in the pharma space from companies looking to test drugs or supplements that can help people preserve lean muscle mass while taking GLP-1 drugs.
Future Fields is growing insects that produce recombinant proteins for high value, while Oishii is focused on super high value strawberries. Liberation Bioindustries is building biomanufacturing infrastructure in Indiana, enabling other precision fermentation companies to focus and talk seriously to customers and investors.
In conclusion, the foodtech investing climate in 2025 is more disciplined, emphasizing proven business models, strong data, and strategic expertise. This impacts startups by raising the bar for fundraising success while providing opportunities for those aligned with current consumer and sustainability trends. However, the climate for foodtech investing is currently "maybe as bad as it's ever been," according to Siddhi Capital cofounder Steven Finn, with investors being more cautious and generalist investors having left the field, and VC funds struggling to raise funds. A second wave of leaner, smarter startups in these fields is expected to succeed, with investors now underwriting opportunities with a "financing risk first" mindset.
- In this more disciplined 2025 foodtech investing climate, there's a growing interest in startups that focus on sustainable and functional foods, particularly those innovating in alternative proteins and products targeting gut health and health benefits such as muscle maintenance or weight management.
- For food-and-drink startups in 2025, successful fundraising now requires strategic investors who understand the food industry specifics, such as margins, co-packing, shelf life, and regulatory timelines, and who are willing to invest with a "financing risk first" mindset.
